One of the less-commonly used chart system is the Point ‘n Figure (PnF) chart system. Nonetheless, I view these often because there are individuals participating in the market that trade solely on this type of chart – I want to know what they are doing and thinking.
One of the stocks that is receiving a lot of attention in the market currently is $CMG. The earnings report last week was met with a violent reaction to the downside, and now traders are looking for a floor in the stock. Very tough to do here.
In looking at the PnF chart of $CMG this evening, the new pattern that has formed caught my attention: Long Tail Down. No idea what this is? No worries. Here is an excerpt from StockCharts:
Disclosure: I currently have a position in this stock.